Real Estate Showing Signs of Revival

Real Estate Showing Signs of Revival:

The dent in sentiment between April to September last year due to the stir caused by the new policy initiatives has now settled, and developers and financial institutions are positive about the coming six months.

There is something to cheer for real estate with positive sentiments surfacing in the realty sector in India.

The uptick stems from better acceptance of structural reforms like RERA and GST that pulled down industry sentiments in the earlier part of the year, according to the latest survey conducted jointly by FICCINaredco-Knight Frank India for the last quarter of 2017 (October–December 2017)..

This revival in sentiments can be attributed to the hope that more organized players will take the lead in the growth of the sector, leading to more transparency and ease of doing business.

Developers agree. “The real estate sector is indeed back to its recovery path. The markets of Delhi NCR saw corrections in some popular housing pockets of Gurgaon and Noida, and the sales volume has increased in these markets in the wake of these price corrections. Also, legislations like GST and RERA have boosted buyers’ confidence. With more clarity coming in on GST, sales are expected to improve further in the months to come,” Harinder Dhillon, VP (sales) of DLF Ltd, says.

Developers say that increasing buyer confidence backed by structural reforms has improved confidence in the realty market.

“During the past one year or so real estate has seen reforms like demonetization, GST and RERA. The realty market, however, absorbed all reforms, which gave much confidence to homebuyers. Now the sector is showing signs of recovery with sales improving in the wake of correction in property prices. Both mid- and affordable-housing segments are registering improvements in sales. Hopefully, it is only a matter of a few quarters for the market to be back on track,” Gaurav Mittal, MD of CHD Developers, said.

Property sales are also believed to be improving because buyers are getting better deals in the market. “The implementation of various reforms has boosted buyer confidence. Also, in the current market situation homebuyers are in a better position to negotiate and grab better deals, leading to improvement in sales,” Ravish Kapoor, director of Elan Group, said.

Industry experts say that residential property market is gradually reviving, but a lot of suppressed sentiment dynamics are still very much at play and the overly adventurous pricing developers indulged in over the past few years have definitely had a part in this.

In such a market environment, discounts – either overt in the form of slashed rates or covert in the form of waived statutory government fees, free parking, etc – have been a significant factor and served to attract buyers. However, not everything is selling equally well.

“If all the other fundamentals for a purchase decision – such as good location, the credibility of the builder, available amenities, overall rational pricing, and RERA registration – buyers feel confident to respond to the added incentives of discounts. Also, what is currently selling is affordable and mid-income housing in the primary sales segment. Premium housing, as well as the resale market, took a big hit after demonetization because they were traditionally targets for unaccounted funds. While the overall market is recovering, premium housing is taking longer to recuperate,” Anuj Puri, chairman of ANAROCK Property Consultants, said.

Though it has seen in Jaypee Greens Wish Town, some of projects are ready to move in and people are moving to side of Noida Greater Noida Expressway to find ready to move in project. The positive thing is that the connectivity with  the road and metro is already functional there.

Jaypee Greens having ready to move in apartments in Kosmos and klassic project.